Cryptocurrency Facebook plans encounter resistance worldwide | Economy | '
"Facebook has repeatedly flouted data on billions of people and their protection," said Democratic MP and Chair of the US Financial Committee, Maxine Waters. "With the announcement to create a cryptocurrency, Facebook continues its uncontrolled expansion and extends its reach to the lives of its users." It called on the world's largest social network to put its plans for the cyber currency called "Libra" on hold and await investigations by the authorities.
Facebook is again facing lawsuits for careless protection of users' privacy. The group is already too big and too powerful and use the data of its users without sufficient privacy to protect them, criticized Sherrod Brown, Democrat in the Banking Committee of the US Senate. "We can not allow Facebook to run a risky new cryptocurrency from a Swiss bank account without supervision." Republican MP Patrick McHenry requested a hearing from Facebook representatives on the plans.
Also in Europe great distrust
There is also a lot of mistrust in Europe: French Finance Minister Bruno Le Maire pleaded for greater control of technology giants like Facebook. "This money will allow Facebook to collect millions of dollars of data, reinforcing my belief that it is necessary to regulate the digital giants," he told Radio Europe 1. Plans for Libra should alert supervisors, the EU said – MEP Markus Ferber (CSU) to concerns. The European Commission should therefore start work on the legal framework for cryptocurrencies.
In the first half of 2020, Facebook intends to launch a self-developed cryptocurrency. Libra is designed to allow users to send money among themselves and to buy goods from companies. A company spokesman said Facebook will answer all questions from the legislature. Talk to authorities in the United States and Switzerland, where the company behind Libra is registered.
Well-known companies as supporters
With Libra, Facebook wants to go into global payments and industry experts expect that this could shake up the traditional financial system. The plans are supported by well-known companies such as Mastercard, PayPal and Spotify. "The Facebook Libra project is groundbreaking in terms of size, claim and probability of success and can enormously accelerate the distribution of crypto currencies," said Hartmut Giesen, a digtitic expert at Sutor Bank in Hamburg. Libra could be a pioneer in the so-called remittance sector, ie the business of transferring funds by migrants to their homeland, explained Andreas Pratz, an expert at PwC for Financial Services.
Unlike the largest and best-known cryptocurrency Bitcoin Libra is linked to a basket of several currencies, especially the US dollar. This is to avoid fluctuations in value as in Bitcoin. Bitcoin is a digital currency made by computing complex algorithms from computers and is not tied to any other currency.
ul / hb (rtr)
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